Justin Sun’s HTX Exchange Sees $250 Million Outflow, Another Exchange Collapse?

Bhushan Akolkar
December 11, 2023
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Tron Founder Justin Sun Spotlights Major HTX Milestone

Tron founder Justin Sun has been having a hard time while dealing with troubles at his own crypto exchange HTX. Ever since resuming operations after suffering a major hack, the HTX exchange saw a staggering $258 million in net outflows.

HTX Exchange Sees Massive Outflows

HTX, formerly recognized as Huobi, exhibited an average trading volume of $1.6 billion over the last 24 hours, positioning it among the top 20 cryptocurrency exchanges by this measure.

Data from DefiLlama indicates that $258 million departed from the exchange during the period between its restart on November 25 and December 10. This movement hints at a certain level of discomfort among clients following the security incident last month. HTX reported a loss of $30 million in crypto tokens due to the breach and temporarily halted withdrawals and deposits in the aftermath of the attack.

Sun is additionally associated with the Poloniex exchange and the HECO Bridge, an infrastructure established by HTX to facilitate transfers across blockchains. Both Poloniex and HECO experienced security breaches in November, resulting in the misappropriation of approximately $200 million in cryptocurrencies.

Following the November security incident involving HTX, Sun, in a communication on X, disclosed an ongoing investigation and asserted the exchange’s commitment to “fully compensate for HTX’s hot wallet losses.” It is noteworthy that hackers had previously siphoned off $8 million from the platform in September.

HTX is another major exchange facing major outflows over the last month. Binance, the world’s largest exchange also faced major outflows in billions of dollars, following the $4.3 billion settlement.

A Look At Exchange Reserves

Within HTX’s reserves, Bitcoin (BTC) represents the largest portion, approximately 33%, as reported by DefiLlama. The TRX token from the Tron blockchain, launched by Sun in 2017, accounts for around 32%. HTX’s native exchange coin, HT, makes up about 14%, followed by a Sun-associated token named stUSDT, constituting 12% of the reserves.

Courtesy: Bloomberg

Notably, TRX has been at the center of fraud allegations against Sun in the United States. In a lawsuit filed in March, the Securities and Exchange Commission accused Sun and his entities of market manipulation to artificially inflate the trading activity of the token. Sun responded to the lawsuit via Twitter, stating that it “lacks merit.”

Security firm BlockSec reported that HTX successfully recovered the $8 million stolen in September. However, the $30 million taken in the recent security incident appears to remain under the control of the hackers, according to BlockSec

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.